Bamboo Airways plans to launch IPO in US

17-Apr-2021 Intellasia | The Saigon Times | 5:02 AM Print This Post

Bamboo Airways plans to launch its initial public offering (IPO) in the United States in the third quarter of this year to mobilise $200 million, said Bamboo Airways Chair Trinh Van Quyet.

The IPO is expected to help increase the airline’s market capitalisation to $4 billion, according to Reuters.

The air carrier will offer a 5%-7 percent stake in the IPO.

Bamboo Airways, a subsidiary of property developer FLC Group, has been working with an international auditing firm to prepare for the IPO, which may be launched on the New York Stock Exchange.

This is the first time Quyet has mentioned the IPO plan in the United States. At a recent shareholder meeting of FLC, Quyet just said that Bamboo Airways would launch its IPO on a local stock exchange this quarter at the earliest and next quarter at the latest with a starting price of VND60,000 per share.

The IPO in the United States will be part of the airline’s efforts to expand its services globally, Quyet said, adding that the IPO on a local stock exchange was a backup plan, depending on market conditions.

Bamboo Airways expected to operate charter flights to the United States from July this year and then launch direct flights from HCM City to San Francisco from September with a frequency of three flights a week.

The US Department of Transportation allowed the airline to carry passengers and cargo stateside in November last year.

Bamboo Airways will increase its fleet from 30 to 40 aircraft by the end of this year and introduce flights to Australia, Germany, Japan and the United Kingdom if the Covid-19 pandemic is brought under control.

In Vietnam, it currently operates 60 air routes. Last year, it carried more than seven million passengers, accounting for 20 percent of the local market. The airline expects to raise the market share to 30 percent this year.


Category: Stocks, Vietnam

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